Incoterms DAP - Delivered At Place (2024)

FAQs

Incoterms DAP - Delivered At Place? ›

Under the Delivered At Place (DAP) Incoterms rules, the seller is responsible for delivery of the goods, ready for unloading, at the named place of destination. The seller assumes all risks involved up to unloading. Unloading is at the buyer's risk and cost. DAP can apply to any—and more than one—mode of transport.

When goods are bought or sold “Delivery at Place” (DAP) it means that the Seller delivers the goods to a place previously agreed to by the seller and the buyer. This can be any location.

When the goods have reached the specified destination, the buyer takes on the risk and responsibility for the unloading of the goods and clearing them for import. The buyer in a DAP shipping agreement also has responsibility for paying import duties and any other clearance or local taxes.

DAP insurance

Cargo insurance is not an obligation for either party under the DAP Incoterm. However, given the significant responsibilities and liabilities of the seller, most sellers exporting under DAP often prefer to purchase insurance.

DAP simply means that the seller takes on all the risks and costs of delivering goods to an agreed-upon location. This means they are responsible for anything associated with packaging, documentation, export approval, loading charges, and ultimate delivery.

Understanding Delivered-at-Place

For example, a buyer in London enters into a DAP deal with a seller from New York to purchase a consignment of goods. It means that the seller from New York has to pay to transport the goods from their storage to the port and from the port to London.

Who pays freight on DDP? In a DDP agreement, the seller of the goods is responsible for all shipping costs, as well as customs clearance fees, import duties, and VAT. Essentially, the seller pays for all fees associated with getting the goods to the buyer.

What is the difference between DAP and FOB? The main difference between Delivered at Place (DAP) and Free on Board (FOB) terms of delivery is that with DAP, the seller is responsible for arranging and paying for transport while with FOB terms, it's up to the buyer to arrange and pay for transport.

The main difference between DDP and DAP is delivery to destination and who is responsible for import duty, taxes and security clearance. Under DDP, the seller assumes the maximum responsibility in costs and risk from the beginning to the end. Under DAP, the buyer bears the costs and taxes of import clearance.

DAP is an INCOTERM meaning “Delivered At Place”, which means the Vendor assumes all costs, until delivered to a “Defined” Place. DAP should read “DAP (Name of Place)” since you have to agree to a Delivery Place, if not Vendor may deliver to the Place he defines, which might not be your door!

What are the benefits of DAP incoterm? ›

Advantages of DAP Incoterms

Simplified logistics for the buyer: DAP Incoterms simplify the import process for the buyer, as the exporter takes care of most of the logistics. This is particularly beneficial for SMBs with limited experience in international trade.

The significant distinction separating the two Incoterms is that DDP shipping services ensure the cargo arrives at the buyer's physical location after the shipment is imported. By comparison, DAP shipping services are only responsible for ensuring the cargo arrives at the country's drop-off location.

Benefits of DAP (Delivered at Place)

Greater control over transportation costs for sellers. Simplified customs clearance process, as buyers handle import duties. Flexibility with Incoterms, allowing parties to negotiate terms that suit their needs.

DAP – Delivered At Place

This essentially means that the customer pays the duty tax, from DHL's website: "The seller bears the responsibility and risks to deliver the goods to a named place.

What is the difference between CIP and DAP? The difference between Carriage and Insurance Paid To (CIP) and Delivered At Place (DAP) is that with CIP the seller pays for both the freight and insurance costs from their facility to the destination port, while with DAP they only pay freight charges.

What is the difference between DAP and FOB? The main difference between Delivered at Place (DAP) and Free on Board (FOB) terms of delivery is that with DAP, the seller is responsible for arranging and paying for transport while with FOB terms, it's up to the buyer to arrange and pay for transport.